Reservoir Exploration Technology ASA (RXT) announced unaudited results for the first quarter 2008. Financial results were as previously guided. The company expects to keep its position as OBC market leader, take existing technology to deeper waters and offer complementary EM services in the future.
EBITDA for the quarter was USD 4.0 million, compared to 14.4 million in Q4 2007 and minus 3.5 million in Q1 2007. Revenues were USD 31.6 million compared to 36 million in Q4 2007 and 8.4 million in Q1 2007. Net result was minus USD 12.9 million (mainly due to currency exchange losses) compared to minus 1.5 million in Q4 2007 and minus 12 million in Q1 2007. Annual EBITDA-guidance per crew of $20 million remains unchanged.
During the quarter RXT successfully tested acquisition in deeper water in the Gulf of Mexico, with water depths of more than 1100 meters. In addition, the project to offer EM technology is well on its way. RXT expects to have a prototype crew operational early next year and a full capacity crew within the end of next year.
Ultimately it is planned to deploy the EM technology on RXT's existing seismic vessels in order that both multi component seismic and EM technology can be offered from the same operational platform.
The two technologies are totally complementary. The imaging strength of OBC seismic, combined with the fluid discrimination capability of EM, will provide a unique and powerful integrated solution for reservoir characterization and production monitoring, to even better address the oil company challenges going forward, CEO of RXT, Michael Scott, comments.
RXT is adding two more operations this year, and has one more planned for next year, expecting to maintain the share of the rapidly expanding OBC market at more than 50 percent.
There has been an unprecedented increase in the level of interest in our services from oil companies in all regions of the world and consequently we expect demand to continue to exceed supply for the foreseeable future. The value of outstanding tenders is now over $800 million, Scott continues.
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